UK companies to get two years to smash glass ceiling for women

Leading British companies are expected to be given a two year breathing space
to increase the number of women in boardrooms before tougher measures are
considered.

The report is expected to recommend companies should be set targets for increasing boardroom representationPhoto: ALAMY

By Roland Gribben

6:15AM GMT 14 Feb 2011

An inquiry headed by Lord Davies, former trade minister and ex-Standard Chartered chief executive, is understood to have concluded that FTSE 100 companies should be given more time to raise the proportion of female directors rather than immediately face quotas.

Lord Davies, asked by David Cameron to review the barriers preventing more women reaching the top echelons of the corporate world, has rejected demands for a fixed number of female directors although has not ruled them out entirely.

The report is expected to recommend companies should be set targets for increasing boardroom representation and produce regular updates on progress and suggests institutional shareholders and organisations such as The Financial Reporting Council should be more closely involved to maintain the pressure.

Lord Davies acknowledges that British companies have been painfully slow in either promoting or developing the business talents of women in their ranks but the decision to reject quotas will disappoint pressure groups calling for more radical changes and a wider examination of gender issues throughout company hierarchies.

The percentage of women in board posts in FTSE 100 companies has almost doubled from 6.9pc to 12.5pc over the past decade with 79 of them having at least one female director. The number of companies with female executive director posts has only edged up from 12 to 16 over the period.